Comparative study and analysis of two internationally competing brands: Cisco & Huawei, including examinations of brand creation, positioning, building, measurements, branding strategies, brand architecture and hierarchy, extending, sustaining and expanding strategies for the brand. I also conducted SWOT analysis, discussion of overall brand competitiveness and strategy recommendations.

1. Comparative
Brand Audit
Cisco Systems, Inc. and
Huawei Technologies
Co. Ltd.
Erika L. Friedmeyer

2. Executive Summary
Comparative Brand Audit: Cisco and Huawei
The following comparative brand audit studies Cisco Systems, Inc. and Huawei Technologies Co.
Ltd.’s respective brands, Cisco and Huawei. The two brands, Cisco from San Francisco, Huawei from
Shenzhen, compete in the US, China and around the world as leading providers of information
technology solutions, including wireless networking, security systems and telecommunication
technologies.
Both brands are known for innovative technology solutions, while Huawei is also known for
mobile devices and Cisco also for services and program certifications. Cisco has established a strong
customer loyalty base, while Huawei is developing this internationally. While Cisco provides a more
service-oriented brand, supported by its brand mantra, “built for the human network,” Huawei offers a
broader range of competitively priced products, while Cisco is only now moving out of a premium pricing
strategy. Cisco boasts a descriptive, meaningful logo, symbolizing the brand’s city of originand industry
(Golden Gate Bridge and bandwidth bars). Huawei also adapted its logo over time, but lacks descriptors
or meaningfulness. Both firms adapt with changing technology, investing heavily in R&D, with strong
transferability due to the nature of the product, shown by the brands’ presence in over 100 countries.
Both firms employing pull strategies, Huawei has established itself in part because of its
competitive pricing strategy, while employed a premium pricing strategy until the past few years, in
which it is attempting to adopt a competitive pricing strategy. Cisco has maintained its association with
San Francisco and Huawei with China and both establishing brand alliances through joint ventures and
duel-branded products, such as Cisco’s Intel-powered Unified Computing System. Using the free
association method, brand asset valuator and the income approach, the brands are measured and
evaluated. By examining the brand value stages and brand equity management, Cisco is stronger than
Huawei on effectively all counts.
Next examining branding strategies, Huawei and Cisco’s brand architecture and hierarchy are
effectively identical, with the excepting of Huawei’s mobile devices product line. Examining the brands’
extending, sustaining and expanding strategies, both Cisco and Huawei employ similar strategies,
advancing into new technologies as they develop so as not to be left behind by the competition,
expanding into worldwide markets through both acquisitions and geo-expansion. Despite Huawei’s
political problems which have hindered its growth, it has still managed to grow in international markets.
Finally, I offer recommendations that Huawei strive towards transparency and Cisco move out of
self-competition with its subsidiary, Linksys, and embrace a competitive pricing strategy.

3. Comparative Brand Audit:
Cisco Systems, Inc. and Huawei Technologies Co. Ltd.
Cisco Systems, Inc. and Huawei Technologies Co. Ltd., are competitors in the global information
technology market. Because of their frequent interactions across multiple markets, similar age, focus and
goals, they are interesting brands to compare and contrast. This audit will include the following contents:
brand background, brand creation and position, including customer-based brand equity and competitive
frame of reference, brand building, including brand elements and tactical contributions, marketing
strategies and secondary brand associations, brand measurement using the free association method,
brand asset valuator and the income approach, brand value stages, branding strategies, including brand
architecture and hierarchy, extending, sustaining and expanding strategies, and conclusions and
recommendations for future branding success.
Article I. Background Information
Cisco, founded in 1984, is just a few years younger than its Chinese competitor, Huawei. As
NASDAQ traded company with 63,870 worldwide employees, Cisco is a ground-breaking and innovative
firm, establishing itself as a worldwide leader in networking with the invention of the multi-protocol
router.1 Cisco’s market share leadership in each of its product markets range from 23.3% in home
network (lagging behind Linksys’ approximate 50%) to 69.6% in switching, leading the competition in six
of nine markets.2 Cisco also witnesses double digit growth across all geographic markets, including 11%
growth in Asia with second quarter revenues exceeding $1.7b in 2012. With over 475 offices in over 165
countries, Cisco entered China in 1994, just ten years after its founding, employing 3,400 people in China
as of 2010, establishing branch offices and a large R&D center in Shanghai. Cisco has also invested in
fostering innovation in the local market, including building 300 Cisco Networking Academies in higher
vocational institutes to build talent.3
Huawei was founded in Shenzhen in 1987, employing nearly twice as many employees as Cisco
worldwide.4 For its first twelve years, Huawei expanded domestically and then expanded internationally,
1
Cisco Systems, Inc. (2012). Cisco overview. Retrieved from http://newsroom.cisco.com/overview
2
Cisco Systems, Inc. (2012). Corporate overview: Q2FY12. Retrieved from
http://newsroom.cisco.com/documents/10157/0/Corporate+Overview+-+Q2FY12.pdf
3
Cisco Systems, Inc. (2012). Cisco China Backgrounder. Retrieved from
http://www.cisco.com/web/CN/expo/en/pdf/cisco_china_backgrounder.pdf
4
Huawei Technologies Co. Ltd. (2012). Milestones. Retrieved fromhttp://www.huawei.com/en/about-
huawei/corporate-info/milestone/index.htm

4. establishing R&D facilities, into India in 1999 and then Sweden the following year. In 2001, Huawei
established Huawei North America in Dallas, Texas, with international market sales reaching $552m in
2002. By 2005, international contract orders exceeded domestic sales and, by 2007, Huawei had
established joint ventures with Symantec and Global Marine. As of 2008, Huawei ranks third in
worldwide market share in mobile network equipment and first in mobile broadband devices and in
2010, Huawei was awarded the"2010 Corporate Use of Innovation Award" by The Economist.Although
Huawei’s geographic reach is a fair bit smaller than Cisco’s, its products and solutions serve one third of
the world’s population, reaching just over 100 countries. However, Huawei’s experience in the US has
not been without many rough patches, including altercations with the US legal system and Congress.
With at least four bids to acquire US technology companies and mobile supply contracts, including firms
like 3Leaf, it was rebuffed on national security grounds. Huawei is also under investigation by the State
Department for selling equipment that could be used for monitoring mobile phone users in Iran, which
could be a breach of US sanctions, leading to Huawei’s exclusion from all US government procurement.5
Article II. Brand Creation and Positioning
Both Cisco and Huawei are monolithic brands, although both maintain a few independent or
partner brands in addition to the corporate, family brand. For more information on the brand
relationship and hierarchy, please see Section 6.02.
Section 2.01 Customer-Based Brand Equity
Cisco Huawei
Global networking and security Leading global ICT solutions
Identity
systems leader provider based in China6
Advanced hardware and China’s first real global brand,
Meaning software in information innovative technologies and
technology and networking devices
High-quality, innovative, end-to- Innovative and advanced, ease-
Response
end services of-use
Relationship Loyal customer base Engaged customer base
Both Cisco and Huawei hold identities as global leaders in information technology, although
Huawei has a clearer geographic identity, for better or worse, giving it meaning as China’s first real global
brand, producing advanced and innovative technology and mobile devices, such as smart-phones and
5
Potter, B. (2012, March 28). Huawei’s growing us image problem. Retrieved from
http://afr.com/p/technology/huawei_growing_us_image_problem_2XddJasU5LkEIs8ZPn7CNP
6
Forbes.com Staff. (Producer). (2012). Will huawei be the first global brand from china?.[Web Video]. Retrieved
from http://video.forbes.com/fvn/forbes-asia/rare-look-inside-huawei

5. tablets. Cisco’s meaning is much the same, as a firm producing advanced hardware and software in
information technology, networking and security systems. In response to Cisco, consumers have found
the brand to be one of high-quality, innovative end-to-end and comprehensive services, while Huawei’s
response is that of innovative, advance and ease-of-use regarding consumer mobile devices.
Cisco has established a loyal customer base, committed to the company’s products and identity
over the past 35 years. Huawei, however, has struggled to establish such a clear customer base,
especially overseas. Despite these struggles, it has attracted much attention through its competitive
pricing, quality equipment and diversity of offerings, giving Huawei a good foundation to build a loyal
customer base, something it has consistently striven to achieve.
Section 2.02 Competitive Frame of Reference
Direct Brand
Target Segment POPs PODs
Competitors Mantra
Businesses Huawei, Dell, D-
(small and large), Link Corp. Supply
More service-
middle-class Ericsson, F5 hardware
oriented, industry Built for the
families, networks, HP, and
Cisco and market human
professionals, Microsoft, software,
development7, network
governments Motorola, security
home networking
and service NETGEAR, systems
providers Symantec
Businesses
(primarily large),
Supply
young
hardware Broader product
adults/mobile
Ericsson, Lucent, and scope, including
Huawei device users, None
Cisco software, telecommunications
professionals,
security and mobile devices
governments
systems
and service
providers
Cisco and Huawei both target very similar market segments, marketing to businesses (although
Cisco more actively targets small businesses than does Huawei, likely due to America’s abundance of
small businesses), professionals, governments (primarily security systems) and communications service
providers. The only significant difference is when it comes to private individuals: Cisco targets middle-
class families installing wireless networks in their homes for internet and information sharing purposes,
7
Chambers, J. (2008). Interview by P. Burrows [Personal Interview]. Cisco: 'the best company for the world'.
Bloomberg Businessweek, New York City, New York. , Retrieved from
http://www.businessweek.com/magazine/content/08_47/b4109068391138.htm

6. while Huawei targets mobile device users, which are disproportionally young adults, particularly those
with disposable income.
Identifying each other as direct competitors, both Cisco and Huawei also directly compete with
Ericsson. Cisco clearly sees direct competition from other US computer technology producers such as
Dell and Microsoft, while Huawei does not seem to feel this pressure. Huawei has also removed
Symantec from direct competition by teaming up with them for a joint venture: Huawei Symantec.
Points of parity between the two brands focus around their products: hardware and software for
security and networking systems. Points of difference, however, include Cisco’s commitment to service
and solution design, providing networking equipment for families in their homes, as well as industry and
market development in foreign markets, seeking to transform countries that lack the skill sets to make
full use of the internet and information technology, manufacturing a market for its products where one
did not previous exist. Huawei, on the other hand, offers a broader product scope which includes
telecommunications and mobile devices, such as smart-phones and tablet PCs, putting Huawei not in
your home, but in your pocket.
While Huawei lacks a brand mantra to express the brand’s core values, Cisco uses the brand
mantra, “Built for the human network,” highlighting the brand’s commitment to networking not only
information, but also individuals.
Article III. Branding Building
Section 3.01 Brand Elements and Tactical Contributions
The memorability of both Cisco and Huawei come from the proliferation of their products,
producing brand recognition, while Cisco also adds to its memorability through its memorable and
meaningful logo and name. Huawei’s likeability is drawn from it dedication to innovation and
advancement as well as the ease-of-use of its devices such as smart-phones and tablets. Cisco, on the
other hand, draws it from its dedication to customers and the ‘human network.’ Huawei’s
meaningfulness is weak, coming only from its Chinese name denoting it as a high-technology firm,
whereas Cisco draws it also from its logo, which resembles bandwidth bars and connectivity, and
customer-oriented brand mantra.
Both Huawei and Cisco move with changing technological needs, developing and
entering into changing fields, such as Huawei developing cloud technology and consumer devices and
Cisco moving into virtualization technology. Both have undergone logo adaptation throughout the

7. Brand Elements Cisco Huawei
Memorable logo and name, Proliferation of products, brand
Memorability
proliferation of products recognition
‘Human network’ connotes
Likeability customer- and individual-based Innovation and ease-of-use
service and products
Logo resembles bandwidth bars
Chinese name acknowledges high-
Meaningfulness (connectivity), innovative and cutting
technology and innovation
edge, customer-oriented
Moves with new technology needs:
adapting to cloud and virtualization
technology; logo has been adjusted Moves with new technology needs:
over the last 35 years, reaching its developing cloud technology and new
Adaptability
current form in 20068. Logo elements devices; logo has undergone
and colors have remained consistent, renovation
but has a few different color options,
depending on the background
Detailed licensing process, maintains Name, logo, coding patent and
Protectability
hundreds of patents9 trademark protected
Global services, deployed in over 165 Global services, deployed in over 100
Transferability
countries countries
lifespan of the brand, although Cisco’s has
been more dramatic than Huawei’s, despite
neither being particularly drastic.Cisco added
its name to the logo and made the bars more
reminiscent of connectivity bars than simply
the Golden Gate Bridge and updated the font
choice. Huawei adapted the shape of its logo,
but the only significant change was to
remove the Chinese characters and replace
them with pinyin, making the brand more
accessible to non-Chinese-speaking
consumers.
Protectability is a huge concern for
both Cisco and Huawei, highlighted by the
8
Logo Addiction. (2010, November 20). Retrieved from http://logoaddiction.com/?p=55
9
Cisco Systems, Inc. (2012). Corporate overview: Q2FY12. Retrieved from
http://newsroom.cisco.com/documents/10157/0/Corporate+Overview+-+Q2FY12.pdf

8. copyright infringement lawsuit Cisco brought against Huawei in 2003 (for further discussion, see Section
5.02), both of whom maintain countless patents and trademarks to protect their brand identity and
technology coding. Transferability of the Huawei and Cisco brands is shown by their global presence, the
need for networking and security technology seen across national borders, bound not by language,
culture or geographic needs. Huawei has expanded into over 100 countries while Cisco has entered over
165.
Tactics Cisco Huawei
“思科” is meaningful and descriptive of Effectively meaningless in
Name company’s primary purpose and identity English, “华为” not that
while still maintaining semblance to English
meaningful in Chinese, either
name, ‘Cisco’ comes from ‘San Francisco’
Very informative corporate website, CSR
Informative corporate website
website, YouTube channel for
with unique websites for
marketing/news/company information,
URLs different regions in local
social media presence (Twitter, FB), unique
language, not as easy to navigate
websites for different regions in local
or as informative as Cisco’s
language, not just translated
Simple, adaptable to different needs,
although not translated across different
geographical markets, descriptive Simple and adaptable, though
Logo
(reminiscent of networking, bandwidth bars not particularly meaningful
as well as the Golden Gate Bridge in San
Francisco)
Character None None
Slogan “Built for the human network” None
Jingle None None
Clean, modern, streamlined, similar to Clean, modern, streamlined,
Packaging
Huawei’s similar to Cisco’s
Huawei and Cisco’s tactical contributions are also quite similar, with the exception of Huawei’s
overarching lack of meaning in its brand identity. Cisco’s name is layered with meaning, ‘Cisco’ being a
derivation of San Francisco, the city in which the brand was created which carries an identity of
technological innovation. Cisco’s Chinese name, “思科,” is not only phonetically similar to the brand’s
English name, but is also meaningful and descriptive of the company’s primary purpose, roughly
translating to ‘thinking science.’ Huawei’s name, however, lacks significant meaning in Chinese or English.
Without an English name, ‘Huawei’ acts as nothing more than an indicator that the brand is a Chinese
brand, where “华为” can be translated as ‘magnificent doing’ or ‘China does,’ neither of which is
particularly meaningful or descriptive.

9. The online presence of both Cisco and Huawei is substantial, maintaining informative corporate
websites, providing information on brand history, financial information, product information and
company news. Both are wise, hosting unique websites for different regions in the local language with
information and news relevant to the brand’s presence in that region, not simply a translated version of
the corporate website. Cisco, in particular, offers a wealth of information on its website, including unique
websites for corporate social responsibility and other such subjects, and a substantial social media
presence on Facebook, Twitter and YouTube, where it broadcasts videos on industry and company news,
marketing and executive interviews.
While Huawei and Cisco both have simple and adaptable logos (Cisco, for example, converts the
logo to all white when placed on a dark background), Cisco’s is substantially more meaningful, as
discussed above, reflecting the brand’s city of origin and primary function: connectivity. Neither Cisco
nor Huawei adapt their logos across different geographic or linguistic markets.
Neither Huawei nor Cisco has a character or jingle, perhaps reflecting their minimal public
marketing and desire to maintain a very professional appearance. Cisco does, however, maintain ‘built
for the human network’ as both a brand mantra and slogan, as discussed in Section 3.02. Both firms’
packaging is remarkably similar, primarily white with clean, modern and streamlined designs discreetly
featuring the brand logo, portraying a modern and stylish identity for the products.
Section 3.02 Marketing strategies
Both Huawei and Cisco use a pull strategy, with minimal active advertising and allowing the
products to sell themselves. Products are sold online or at certified resellers. Recognizing the emerging
role of social networking over traditional advertising, Cisco focuses on creating buzz marketing through
social media, maintaining Facebook, Twitter and YouTube accounts.For both firms, formal advertising is
focused toward corporate customers, not private individuals.
As for pricing strategies, Cisco has been moving more toward a competitive pricing strategy
following the 2008 recession, after which the brand struggled to recover with its premium pricing
strategy. Cisco strives to produce high quality-price ratio products, although given the changing economy
and market, it is considering opting for lower price-point equipment.10 Huawei, on the other hand, has
10
Investopedia. (2011). Cisco looks to get competitive. Retrieved fromhttp://www.investopedia.com/stock-
analysis/2011/Cisco-Looks-To-Get-Competitive-CSCO-NTGR-BRCD-JNPR-HPQ0614.aspx#axzz1tjWwu6Gi

10. maintained a competitive pricing strategy, facilitated, in part, by low Chinese labor and R&D costs and
government subsidies.11
Section 3.03 Secondary Branding
Neither Cisco nor Huawei have chosen to engage in substantial secondary branding, perhaps
attempting to maintain an undiluted brand image. Despite this, both have other brand alliance
associations as well as place associations and sport associations.
Cisco’s current brand alliance is with Intel to create the Cisco Unified Computing System, a server
system powered by the Intel Xeon processor, a data center solution for large enterprises12. Interestingly,
Huawei has also teamed up with Intel this year to create an “interoperability test lab for the
implementation of long term evolution time-division duplexing (LTE TDD) networks”13 in China. This
alliance benefits Huawei through marketing opportunities for its networking equipment, whereas Intel
will use it to grow its presence in China. Huawei has also formed brand alliances with Symantec and
Global Marine Systems in joint ventures, creating Huawei Symantec and Huawei Marine Networks,
respectively.
Drawing its name from its city of origin, San Francisco, Cisco maintains its association with the
city as well as the United States as a whole. Cisco has also developed a ‘smart city project’ in Songdo,
South Korea14, a city built from scratch from advanced technology encompassing green energy solutions,
technological lifestyle and leisure improvements, transportation solutions, unparalleled lifestyle
experiences and other highly advanced and innovative solutions that could change the face of cities in
the future. Cisco has invested millions of dollars into the project. Huawei has not actively associated
itself with particular geographic locations, but continues its association with China as a Chinese brand.
Huawei associated itself with Atlético de Madrid15 football club to celebrate ten years in Spain,
sponsoring the club for its April 11th, 2012 match against Real Madrid in attempts to connect itself with
the club’s history of achievement and to connect with Huawei consumers in Western Europe. Cisco has
11
Sun, L. (2011, November 23). What do we really know about Huawei?. Retrieved from
http://www.telecomstechnews.com/news/2011/nov/23/what-do-we-know-about-huawei/
12
Cisco Systems, Inc. (2012). Cisco unified computing system. Retrieved from
http://www.cisco.com/web/solutions/data_center/ucs_servers.html?CAMPAIGN=ucs_servers&COUNTRY
_SITE=us&POSITION=sl&REFERRING_SITE=Cisco%2Ecom+homepage&CREATIVE=homepage+spotlight
13
Latif, L. (2012, April 30). Intel teams up with Huawei to test LTE TDD in China. The Inquirer, Retrieved from
http://www.theinquirer.net/inquirer/news/2171480/intel-teams-hauwei-test-lte-tdd-china
14
Gale International, LLC. (2012). Songdo IBD. Retrieved fromhttp://www.songdo.com/
15
Huawei Technologies Co. Ltd. (2012, April 09). Football sponsorship celebrates Huawei’s 10 years in Spain and the
growth of its global consumer brand. Retrieved from
http://www.huaweidevice.com/worldwide/newsIndex.do?method=view&newsId=182&directoryId=5024
&pageType=news

11. made no such formal associations with people or clubs, but has used the National Basketball Association
(USA)’s experiences with Cisco technology to show the versatility and speed of its video content
network.16
Article IV. Brand Measurements
Section 4.01 Brand Value Chain
Value Stages Cisco Huawei17
Marketing Investment Moderate Low, but growing (R&D investment)
Customer Mindset Strong Struggling (security suspicion)
Market Performance Very strong Weak, but determined
Shareholder Value Healthy, strong and growing Private firm
(a) Marketing Investment
Both Cisco and Huawei have growing marketing investment, both in their home countries and abroad.
Because of the nature of their products and marketing strategies, product marketing is minimal, but
focuses instead on providing quality products through R&D investment and consistent, helpful services
and communications. At present, Cisco’s combination of strong R&D investment and communication
services somewhat outweigh Huawei’s but both are growing.
(b) Customer Mindset
Cisco, both in the US and abroad, exhibits strong customer awareness, attitudes and attachment.
Despite concerns about reputation damage from Cisco’s lawsuit against Huawei (see Section 5.02),
Cisco’s continued strong performance and growing revenues in China as East Asia show a solid customer
mindset. Huawei, on the other hand, has starkly different performance in China compared to the US.
While US customers have thorough awareness of Huawei, attitudes and attachment are both quite
negative due to security and intellectual property concerns (Section 5.02), dramatically damaging
customer mindset. However, in China, Huawei is thought of quite highly and widely respected.
16
Cisco Systems, Inc. (2012). Built for video management. Retrieved from
http://gobuild.cisco.com/view/video_management?CAMPAIGN=hn+built+for&COUNTRY_SITE=us&POSITI
ON=sl&REFERRING_SITE=Cisco%2Ecom+Home+Page+Spotlight&CREATIVE=spotlight+march+nba+video#/v
iew/video_management
17
Lev-Ram, M. (2012,February 23). Huawei is here to stay. CNN Money, Retrieved from
http://tech.fortune.cnn.com/2012/02/23/huawei-is-here-to-stay/

12. (c) Market Performance
Both Cisco and Huawei have very strong market performance worldwide, with market shares
exceeding 60 or 70% in some markets, both domestically and abroad. However, Huawei’s market
performance has struggled in the United States and some global markets due to failed acquisitions and
security concerns. During the global economic slowdown, Huawei witnessed decreased revenues, but
these struggles seem to have somewhat recovered along with the global economy. However, despite
these challenges, Huawei is persistent in finding success in the US.18
(d) Shareholder Value
Cisco’s shareholder equity is very high, measured at $47,226m and growing, with a healthy P/E ratio
of approximately 15.5. Huawei’s shareholder equity, however, is very difficult to measure as it is a
private, employee-owned company. Based on its performance across markets and particularly in China, it
is safe to assume shareholder value is similar to Cisco’s.
Section 4.02 Brand Equity Management Systems
Both Cisco and Huawei have a solid view of brand equity, thoroughly detailed in both of their
corporate websites and annual reports, as well as the scope of key brands and products. Both Cisco and
Huawei have brand measurement systems and management programs, Cisco’s are much more
developed or, at least, public. For over ten years, Cisco annually conducts customer satisfaction surveys,
measured on a scale of 1 to 5, rising from 4.06 in 1997 to level out around 4.45 since 2008. Huawei,
conversely, touts proactive consumer sensitivity and adaptation, but does not state its methods of doing
so.19
Regarding treatment of the brand, Huawei, particularly, has run into some difficulties, which
have come to define its experience in the US. As previously discussed, Huawei has struggled to separate
itself from its founder’s ties to the Chinese military and People’s Liberation Army, which has elicited
national security concerns. Sale of equipment which could be used for monitoring mobile phone users in
Iran is currently under investigation by the State Department as a breach of US sanctions, potentially
leading to Huawei’s exclusion from all US government procurement.20 They have also experienced issues
18
Lev-Ram, M. (2012,February 23). Huawei is here to stay. CNN Money, Retrieved from
http://tech.fortune.cnn.com/2012/02/23/huawei-is-here-to-stay/
19
Huawei Technologies Co. Ltd. (2012). Quality &Customer Satisfaction. Retrieved from
http://www.huawei.com/us/about-huawei/corporate-info/quality-policy/index.htm
20
Potter, B. (2012, March 28). Huawei’s growing us image problem. Retrieved from
http://afr.com/p/technology/huawei_growing_us_image_problem_2XddJasU5LkEIs8ZPn7CNP

13. in India with Taliban allegations21 and security concerns in Australia.22 Despite no evidence being
uncovered, Huawei has suffered significant, potentially irreparable damage to its image.
Huawei has even suffered poor brand treatment at hand of Cisco itself. In February of 2003,
Cisco sued Huawei for patent infringement and illegally copying router and switch source coding. A year
and a half later, Cisco dropped the suit after it became clear the “problem stemmed from some rogue
developers at Huawei, not a company-wide mandate to rip off Cisco's intellectual property” and the
offending coding was removed.23 Interestingly, both firms saw this as a victory, Cisco viewing it as a
“victory for the protection of intellectual property rights” and Huawei pleased that the case was
dismissed “with prejudice,” keeping Cisco from bringing another lawsuit with the same or similar claims
against Huawei. Unfortunately, both firms suffered damage to their images in the global market, as Cisco
was portrayed as “a bullying multi-national corporation trying to crush a local competitor” in the Chinese
media.24 Cisco’s Chinese executives expressed regret, believing the benefits achieved through the lawsuit
was outweighed by the damage to Cisco’s reputation in China.
Brand Equity Charter Cisco Huawei
Firm view of brand equity ✔ ✔
Scope of key brands ✔ ✔
Actual & desired equity for the brand ✔ ✔
Brand measurement system ✔25 ✔
Brand management programs ✔ ✔
Poor treatment of the brand ✔ ✔
Brand Equity Report
Annual customer satisfaction survey which is reported annually, tied to bonus plan,
Cisco Cisco recognized as #13 Brand in the 2011 Interbrand Best Global Brand study
(third-party equity)
Huawei ???
21
Satyamurty, K. (2001, December 11). Chinese firm's dealings: police kept in the dark about probe The Hindu,
Retrieved from http://www.hindu.com/2001/12/12/stories/2001121200721100.htm
22
Winning, D. (2012, March 26). Canberra talks integrity after reportedly banning Huawei from NBN. Wall Street
Journal, Retrieved from http://blogs.wsj.com/dealjournalaustralia/2012/03/26/canberra-talks-integrity-
after-reportedly-banning-huawei-from-nbn/
23
Harvey,P. (2004, July 28). Cisco drops Huawei Suit. Light Reading, Retrieved from
http://www.lightreading.com/document.asp?doc_id=56939
24
Wikileaks. (2010, February 19). Cablegate: 2010 Shanghai Ipr roundtable –Candid commentary. Retrieved from
http://www.scoop.co.nz/stories/WL1002/S01773.htm
25
Cisco Systems, Inc. (2012). Corporate overview: Q2FY12. Retrieved from
http://newsroom.cisco.com/documents/10157/0/Corporate+Overview+-+Q2FY12.pdf

14. Brand Equity Responsibility
Blair Christie, Senior VP and CMO, Government Affairs26 (also President for APJC,
Cisco
Exec VP of Worldwide Operations)
Huawei ???
Cisco maintains an annual brand equity report which includes the findings from the annual
customer satisfaction survey and third-party equity assessments and studies, such as the 2011
Interbrand Best Global Brand study, which named Cisco the #13 Brand. These findings are reported to
Blair Christie, the Senior Vice President and Chief Marketing Officer, Government Affairs as well as the
President for the Asia Pacific-Japan-China region and Executive Vice President of Worldwide Operations.
The findings of this report are tied in to employees’ bonus plans, building personal investment in brand
equity. It is not apparent that Huawei prepares a formal brand equity report or maintains an advisory
position for brand equity responsibility.
Section 4.03 Measurement techniques
In order to measure Huawei and Cisco’s brand equity, I have chosen to employ the Free
Association technique to identify consumers’ core images and associations with Cisco and Huawei. Cisco
itself uses this approach in customer research and brand equity measurement. To provide a big-picture
view for future development, I have also chosen to use the Brand Asset Valuator, plotting both US and
China market positions. Because Huawei is an entirely employee-owned private company, the market
approach, which uses market capitalization to find brand value, is not very useful. Instead, I’ve chosen to
examine the brand value by
using the income approach,
which views brand equity as the
discounted future cash flow
from the brand’s future earnings
stream.
(a) Free Association
27
Commonly associated
with Cisco are words like ‘market
26
Cisco Systems, Inc. (2012). Blair Christie. Retrieved from http://newsroom.cisco.com/blair-
christie?articleId=33269
27
Cisco Systems, Inc. (2012). Corporate overview: Q2FY12. Retrieved from
http://newsroom.cisco.com/documents/10157/0/Corporate+Overview+-+Q2FY12.pdf

15. transitions’ and ‘innovation,’ identifying Cisco’s commitment to staying more than just up to date, but
ahead of market changes in order to provide the best products and services available. Other
associations include experiential associations like ‘open communication’ and ‘giving back’, symbolic
and brand personality associations such as ‘fun,’ ‘empowerment’ and ‘inclusion’.
Associated with
National Huawei are similar brand
Improvement Routers
Security personality characteristics,
Risk
like ‘innovative’ and
‘improvement’. However,
commonly associated with
R&D Innovative Huawei are also
characteristics with
negative connotations,
such as ‘national security
Poor Mobile
corporate risk’ and ‘poor corporate
responsibility
Phones,
Devices responsibility,’ reflecting
Networking/ Chinese Huawei’s struggle to build
Infrastructure
brand equity in the US
market due to political
and intellectual property misadventures. Still, Huawei elicits product-related associations such as
‘routers,’ ‘mobile phones, devices’
and ‘networking/infrastructure.’
(b) Brand Asset Valuator
(BAV)
Displayed to the right is the
Brand Asset Valuator, showing the
brand value of Cisco and Huawei
both domestically and abroad.
Cisco in the US is placed as a
power leader, with high brand
strength and stature. Cisco in

16. China (思科), however, is transitioning from unrealized potential into a leader position, growing brand
stature and strength. Huawei in China (华为技术) is moving into a declining leader position, despite
having strong brand stature in China due to its increased brand salience and loyalty within China.
However, Huawei in America is an eroded brand whose brand stature includes unbalanced brand
knowledge and esteem, due to its political and legal troubles. Its strength has also suffered due to its
struggles to acquire local brands for brand building.
(c) Income Approach
To examine the brand value both quantitatively and also as function of future, expected income, I
have used the income approach below, finding Cisco’s brand value28at $17.5b and Huawei’s29at $4.98b.
These income values reflect earnings from all markets worldwide, exposing Cisco’s international
brand value to be over 3.5 times greater than Huawei’s. Also, knowing that Huawei’s international
earnings have exceeded domestic earnings since 2005, this also reflects that Huawei is losing ground in
its domestic market, perhaps reflecting China’s lower demand for high-technology products.
Article V. Branding Strategies
Section 5.01 Brand Architecture
Data Center
Small
Networks Collaboration and Home Services
Business
Virtualization
Routers
WebEx
Routers Servers Switches
TelePresence ūmitelepresence
Switches Storage Security and
Video and Home Technical
Wireless Networking Surveillance
Cisco Content Delivery Networking Advanced
Security Data Center Voice and
Voice and Cable TV Set- Developer
Software Switches Conferencing
Unified Tops
Interfaces NX-OS Software Wireless
Communications
Network
28
Cisco 2011 Annual Report, July 30,2011 income values
29
Huawei 2011 Annual Report, 2011 values, converted into US dollars using December 31, 2011 closing rates

17. Storage
Radio Fixed Core Transport Data Energy & Application &
OSS Devices
Access Access Network Network Communication Infrastructure & Software Network
Security
NE Routers CloudStor
AR Routers Storage FBB
Single WDM/OTN Carrier Class
FTTx Metro Services Area O&M Mobile
Single CORE Hybrid Power
DSLAM Platform Network (product Phone
BTS Single EPC MSTP Hybrid Power BSS
Multi- Ethernet Switches Network series) Mobile
Huawei Multi-
Service
Single SDB MSTP
Network Security
Mini-shelter Consumer
Attached MBB Broadband
mode SmartCare Microwave EasySite Enterprise
Access Multi-Service Storage O&M Home
BSC Marine Antenna and RF
uniSite Control Gateway Application (product Devices
Network ODN
PTN Storage series)
ATN SNS Switch
Storage
Above can be seen the brand architecture of both Cisco and Huawei, showing the product lines
across the top and the categories within. Due to the nature of the product, it is difficult to compare the
product lines and categories of Huawei and Cisco side-by-side, in part because Huawei primarily
establishes product lines according to product characteristic and function, while Cisco creates product
lines according to the market segment it is designed to serve (eg: Small Business, Home). When looking
at these two brands, it can be seen easily that Huawei offers a more diverse and extensive product line
offering while Cisco offers more service-based products.
Section 5.02 Brand Hierarchy
The chart below shows the brand hierarchies of Cisco and Huawei respectively, including
selections from their individual brands (Huawei also includes Huawei-Intel and Huawei Marine Systems
joint venture, Cisco including its joint venture with EMC) and modifiers (product lines and categories).
Both companies sell very few products under brands other than the family brand.
Corporate
Brand
Family Brand
Individual
Brands
Data Center
Modifier Networks & Home
Virtualization
Enery & Data Center &
Networks
Infrastructure Storage

18. Section 5.03 Extending Strategies
Cisco’s extending strategies center primarily on constantly introducing new products and
improvements on these products. In addition to these category extensions, Cisco also engages in
sporadic product line extensions when new technologies develop, such as the current product line
extensions into virtualization technology.
Huawei has engaged more substantial extending strategies, introducing not only category and
product line extensions into cloud and mobile device technology, but also brand extensions through its
joint ventures with Symantec and Global Marine Systems, creating Huawei Symantec and Huawei-
Marine Networks brands. Huawei current plans product line extensions into e-education and e-
healthcare.
Section 5.04 Sustaining Strategies
(a) Reinforcement
Both Cisco and Huawei’s reinforcement strategies focus around providing consistent and reliable
products that are perpetually fine-tuned to provide the best possible equipment to consumers. Cisco
also reinforces the brand through its customer satisfaction and brand equity monitoring, striving to
provide top-notch customer service.
(b) Revitalization
By updating their logos and packaging, Cisco and Huawei revitalize their brands simply and effectively,
primarily relying on new technologies and renovated products to continuously revitalize the brand.
(c) Adjustment
Cisco, particularly, is constantly assessing customer needs and adjusting products offerings to reflect
changing market demands. Cisco has entered into home networking as part of its migration strategy,
following the market demands, while Huawei has chosen to migrate into the handheld mobile devices
market. As years pass, both firms retire products or services as they are no longer relevant to current
technological needs. Cisco, who also offers certifications for professionals in IT fields, consistently retires
outdated certifications and training programs.

19. Section 5.05 Expanding Strategies
Both Cisco and Huawei practice standardization strategies, adjusting the software and packaging
language accordingly. Due to the nature of the product, not much customization is necessary as the
demands for equipment, software and services are effectively identical across geographical markets.
Cisco plans to expand into the new markets of IP traffic and handheld devices, stating a need for more
robust architectures, equipment and services in these markets. It has formed alliances through
partnerships across industries, including Intel, and for go-to-market investment strategies. Cisco has
worldwide geo-extension, including countless acquisitions for market acceleration, expansion and new
market entry. In March of 2012, Cisco announced its intent to make its most recent acquisition, NDS
Group Ltd., a leading video software and content security solutions provider from London. This
acquisition will broaden opportunities in the service provider market, expanding reach into emerging
markets, such as China, India, where NDS has establish customer footprint.30
Huawei, however, has had no such success in its expanding strategies, facing resistance in many
of its geographic expansions in last decade. However, it has successful geo-expansion into over 100
countries and greenfield R&D centers around the world, including four in the United States. Despite its
multiple failed and blocked attempts to acquire US brands, it has successful formed alliances and joint
ventures, resulting in the multiple brand extensions discussed above.
Article VI. Conclusions and Recommendations
Section 6.01 SWOT Analysis
Both Cisco and Huawei’s strengths lie in their investments in R&D and patent ownership,
growing their innovative and advanced technological products which have earned each of them their
global recognition. Their weaknesses, however, are fairly different. Cisco’s weaknesses lie in its
attachment to its premium pricing strategy, which has alienated some consumers, particularly during the
recent global recession and recovery. In China, Cisco is also weakened by its appearance as a global
juggernaut bullying smaller brands, particularly following its lawsuit against Huawei in 2003. Huawei’s
weaknesses, however, are in its lack of transparency and image of secrecy, worrying companies and
governments who might otherwise trust the brand to protect valuable security information. Huawei has
30
Cisco Systems, Inc. (2012, March 15). Cisco announces intent to acquire NDS. Retrieved from
http://newsroom.cisco.com/press-release-content?type=webcontent&articleId=712002

20. failed to understand the US legal system and market demands, as well as its image as a risk to national
security,31 which have resulted in its failed acquisitions.
Opportunities for both brands involved continued innovation and technology advances. The
continued growth and expansion of technology usage and literacy offer both brands unlimited growth
opportunities, so long as they stay ahead of the competition through continued improvement. Both
Cisco and Huawei face threats from competition as research and development take time and, if the
competition provides solutions first, the brand will struggle to compete. Development in this industry is
simply risky as the business relies upon continued growth of the internet and internet-based systems.
Merger and acquisitions have no assurance and are inherently risky, particularly in this industry due to
the advanced, high-technology companies with particularly high overhead and sunk costs. Global politics
and exchange rates also pose a threat to international trade as a whole. Huawei, however, also faces
threats from the US government, with the House Intelligence Committee launching informal inquiries in
late 2010 as the campaign against Huawei’s involvement in a $5 billion bid to supply network equipment
to Sprint Nextel was coming to a head, particularly related to Huawei’s ‘reported relationship’ with
People’s Liberation Army. While investigations turned up no evidence for concern, this is not an isolated
incident and Huawei needs to address the threat of political distrust which extends into the nation at
large.
Section 6.02 Overall Brand Competitiveness
Huawei and Cisco are both extremely competitive overall, as demonstrated by their outstanding
market shares (both exceeding 16%, placing them second and first, respectively) in the global market
and multi-billion dollar revenues. Both face trials and have plenty of room for improvement, which I
discuss below.
Section 6.03 Issues to be Resolved& Strategy Recommendations
Huawei’s primary concern is its failure to understand and comply with local legal systems as it
enters new geographic areas. Because of the sensitive nature of security and information systems, it is
imperative that Huawei recognizes how its actions in one market affect demand in other markets.
Huawei’s experience with its sales in Iran impacting its product and acquisition reception in the US
require them to realize the importance of convincing both the US consumers and government that
Huawei’s interests are not inconsistent with US security, which may include establishing new leadership
without connections to the People’s Liberation Army. Huawei must actively and intensively work to
31
Goldberg, A. &Galper, J. (2011, March 03). Where Huawei went wrong in America. Wall Street Journal, Retrieved
from http://online.wsj.com/article/SB10001424052748703559604576175692598333556.html

21. dispel and correct ‘misinformation and misperceptions’ of intellectual property, security and espionage
concerns.
Huawei also needs to consider developing a more formal and consistent measurement and
report of brand equity to help the brand adapt to meet the needs of its customers. Beyond this, it also
needs to become more transparent in its R&D and dealings, as its reputation abroad for being secretive
will cost it dearly as this is an industry which handles very sensitive and valuable information that
consumers are not willing to entrust to companies they do not trust.
As for Cisco, its acquisition and endorsed brand, Linksys, competes with the family brand’s few
home products and is also not commonly identified with its parent company, despite its endorsed brand
relationship. As Cisco’s home products have not received the consumer recognition that Linksys has,
Cisco should consider transitioning all its home product line to Linksys and invest in marketing Linksys as
a part of Cisco. This could help decrease internal competition and increase Cisco’s brand stature in the
home product market.
Huawei needs to take into consideration its behavior and struggles in foreign markets and their
impact on other markets. Issues in the US have drawn suspicion of Huawei in other markets, such as
Australia. In order to control and minimize losses, Huawei should do one of two things: focus on
repairing damage done in overseas markets, making reparations as the community, culture, government
and consumers see fit in order to prove itself as a reliable and secure brand before expanding into other
countries and other markets, or cut its losses in these countries and exit the market, investing in other
developing markets in attempts to contain and move past the struggles in the West.
Huawei also needs to bolster its domestic market by building up the industry as a whole.
Domestic demand needs to grow through technological development in order for Huawei to continue
building as a global brand. Huawei should consider domestic investments similar to Cisco’s Songdo,
South Korea project (Section 4.03) and may also benefit from Cisco’s investment in Networking
Academies to build up the domestic technology industry.
Cisco needs to recognize the nature of its competition and embrace a competitive pricing
strategy, producing a competitively priced product line, if nothing else. The longer Cisco maintains a
premium pricing strategy, the more customers they will lose to foreign competition, like Huawei, with
lower costs of production, in both domestic and international markets.